TVS Motors re-launches ‘Flame’

March 10th, 2008 - 5:37 pm ICT by admin  

By Sanjay Singh
Chennai, March 10 (IANS) TVS Motor Company Ltd Monday re-launched its 125cc Flame motorcycle with a single spark plug ignition, in a bid to cut losses on account of a patent dispute with Bajaj Auto Ltd over the use of twin spark plug technology. The launch of TVS Flame in August last year triggered a row between the two auto majors, who fought a legal battle on whether TVS Motors had violated a patent that Bajaj holds over the use of twin spark plug technology.

The Madras High Court stayed the Chennai-based TVS company from producing and marketing the motorcycle that uses the technology.

TVS Motors lost revenue of about Rs.400 million a month by not selling Flame’s original model.

Venu Srinivasan, chairman and managing director of TVS, told reporters here after Flame’s re-launch that they would make up the losses.

“We would sell about 60,000 Flame motorcycles by the end of the financial year 2008-09,” he said.

Srinivasan added that it would earn Rs.7 billion in the process.

Apart from the conversion of twin spark plug technology to single spark plug ignition, everything else would be the same in Flame, Srinivasan said. The new version of Flame will give a standard mileage of 60-65 km per litre.

The Flame has a unique engine specially designed, patented and licensed to TVS Motor by AVL, Austria, which features a three-valve dual induction system that aids fuel efficiency without compromising on power.

The showroom price for the new Flame has been kept at Rs.46,000.

“The price of the new Flame has been kept similar to the earlier one,” Srinavasan told IANS on the sidelines of the launch.

The TVS is expecting returns of Rs.3.2 billion by the end of March.

Although the company does not have any plans for expanding its manufacturing units, it plans to export its two-wheelers to 10 more countries.

“We export our two-wheelers to 51 countries now, which include countries in the Gulf, Africa and Latin America. We would add 10 more countries very soon,” said H.S Goindi, senior vice-president (International Business), TVS Motors.

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